Developing an Export Marketing Plan

Creating an effective export marketing plan is crucial for any business looking to expand its reach beyond local borders. This strategic blueprint not only identifies target markets but also outlines the steps needed to successfully introduce products to international consumers. In this topic, we will explore the key elements of developing an export marketing plan, including market research, competitive analysis, and promotional strategies. By understanding these components, businesses can position themselves for success in the global marketplace.

• Understand what marketing is. Marketing is a system designed to plan, price, promote, and distribute products in order to satisfy the objectives of an organization. The first step in marketing is to identify your target market.
• Conduct market research. Market research is the process of collecting, analyzing, and interpreting data about your market and competitors. Market research is essential for identifying marketing opportunities and constraints and for identifying prospective buyers and customers. Market research will help you determine which foreign markets have the best potential for your product or service. The sources distinguish between primary market research, which is the collection of data directly from the foreign marketplace, and secondary market research, which is the collection of data from other sources.
• Identify your target market. This involves researching the market, segmenting the market, and exploring buyer behavior.
  • Researching the market involves identifying customer needs and expectations, as well as researching what your current and potential customers are doing. The sources list several questions you should try to answer during market research, including identifying your competitors, determining the size of your potential market, learning about required standards and certifications, and evaluating pricing and distribution channels.
  • Segmenting the market involves identifying groups of customers within a general market who have different wants and needs. Some common ways to segment a market include demographic, geographic, behavioral, and psychographic.
  • Exploring buyer behavior involves determining what factors influence the way the market behaves when making decisions about what, where, when, how often, from whom, and why to buy the product.
• Develop product strategies. Product strategies, which are essential to creating customer value, should focus on your product’s uniqueness and how it will benefit customers. This includes identifying the product’s advantages and disadvantages compared to similar products in the market. An important consideration for exporters is whether they need to modify their product in some way for a particular foreign market; for example, you may need to modify your product to meet the legal requirements for a foreign destination.
• Develop pricing strategies. Several factors should inform your export pricing strategies, including:
  • Whether you are trying to penetrate a new market for long-term growth or whether you are looking for a quick outlet for excess inventory
  • The relationship between your export price and your domestic price
  • The image you want your product to have
  • Your costs, including manufacturing costs, administrative costs, freight forwarding costs, shipping and customs charges, and distributor margins
  • The level of market demand in your target market
  • Your competition in your target market
• Consider using a pro forma invoice. A pro forma invoice, which is essentially a quotation in the format of an invoice, is the preferred method of providing a quote to an overseas buyer in the export market.
• Develop promotional strategies. Promotional strategies, which include advertising, sales promotion, public relations, and personal selling, should be adapted to the specific needs of each foreign market.
  • The sources state that personal selling may be more important in the international market than it is in the domestic market.
  • When developing your promotional strategies, consider whether there is a current promotional opportunity, who your target market is, what your promotional message will be, what media you should employ (e.g., radio, television, print, internet), and how much you can spend.
• Develop distribution strategies. Distribution strategies involve getting the product in the hands of the end user. This will require you to research and select a distribution channel, which is the series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer. If you are a manufacturer, you will need to decide how much you want to be involved in the distribution of your product. You will also need to consider whether you will need warehouse facilities abroad. When choosing a foreign representative or distributor, you should consider their sales records, knowledge of your product or industry, experience, and knowledge of English.
• Familiarize yourself with terms of sale. Terms of sale clarify who is responsible for the various expenses as the goods move from the seller to the buyer. The sources recommend that exporters familiarize themselves with INCOTERMS, which are standard international trade definitions that describe the responsibilities of buyers and sellers.
• Understand export controls and licensing requirements. Some goods require an export license. The sources note that export controls can vary depending on the type of product you are exporting, the country of destination, and the end user. For more information about export licenses and controls, contact the Bureau of Industry and Security (BIS), which is part of the U.S. Department of Commerce.
• Consider using free resources. There are a number of free resources available to help businesses develop export marketing plans, such as the U.S. Commercial Service (part of the U.S. Department of Commerce). The U.S. Commercial Service, formerly known as the Foreign Commercial Service, has offices all over the United States, as well as in U.S. embassies and consulates in over 75 countries. This agency’s services include:
  • Helping you identify markets for your product
  • Providing customized market research
  • Connecting you with buyers and distributors
  • Helping you navigate regulations and logistics

By following these guidelines, you can develop an export marketing plan that will help your company succeed in the global marketplace.